FTX’s Cash Crunch: Crypto Sell-off, $4.4B Settles Customer Claims

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FTX, a cryptocurrency exchange, is selling off crypto assets in order to increase its cash reserves and settle customer claims. The company aims to reach $4.4 billion in cash reserves by the end of 2023. FTX’s affiliates, including FTX Trading Ltd. and Alameda Research LLC, have contributed significantly to this cash pile. However, FTX has cautioned that customers may not be fully compensated for their claims. The value of customer claims has increased from 38 cents on the dollar in October to 73 cents on the dollar as of Friday. FTX has raised $1.8 billion through the sale of digital assets and has also engaged in Bitcoin derivative trades. Despite these efforts, FTX is facing legal battles and challenges from customers, which complicates the company’s path forward.

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